Answer: Their total budget last year was $40,000. Step-by-step explanation: Given : The Smiths spend 6% of their budget on entertainment. i.e. , The money they spend on entertainment = 0.06 x ( Total budget) { 6% is converted to 0.06 , when we divide it by 100 to remove percentage) Since , this year they plan to spend $2,580 on entertainment. i.e. 0.06 x ( Total budget ) = $2,580 On dividing both sides by 0.06 , we get ( Total budget ) = $2,580 ÷ 0.06 = $43,000 Thus , their total budget for this year = $43,000 Also, Their total budget this year is $3,000 more than last year. Therefore , their last year total budget = ( Total budget this year ) - $3000 = $43,000 - $3000 = $40,000 Hence, their total budget last year was $40,000.
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